Financial Notes
THE STATE OF MARKETS.
THE chief feature of the Stock Markets since the rise in the Bank Rate has been the steady advance in gilt-edged
securities, which at the best levels touched during this week showed, in several instances, a rise of nearly 2 points in the interval. For this advance several factors are responsible.
For one thing, the 6/ per cent. Bank Rate had been very fully discounted, and its almost immediate effect in turning the Foreign Exchanges in favour of this country has given
rise to the hope that the next movement, even if it may not come for some few months, may be towards a lower level. There appears to be constant demand for gilt-edged stocks, very largely from smaller investors, and the aftermath of the company promoting boom of last year has had the salutary effect of causing many of them to seek safety first. The market, too, has had a long rest from new: issues of any importance and is apparently but poorly supplied with stock. In general markets business has been quiet, specu- lative sentiment, of course, having received a severe check, and the prospect of the Hatry settlement must continue to exercise a restricting influence until it is out of the way. International stocks suffered a severe set-back in New York over the last week-end, but have shown signs of recovery
• from the lowest leVels, and Amsterdam has continued a strong buyer of Royal Dutch and Margarine Unie. Even the Home Railway Market is a little firmer, but the investor buys on achievement more than prospects in this market, and the outlook is clouded by the wages question and by the broader aspects of the coal situation.
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